Direct-to-consumer (D2C) sleep solution startup The Sleep Company has raised around Rs 177 crore ($21.3 million) in a fresh round led by Premji Invest. This is the first funding round of the Mumbai-based company in 2022.
The round also saw the participation of existing backer Fireside Venture. Alteria Capital also infused Rs 8.2 crore debt, the company said in a statement.
The Sleep Company has already received over $14 million, as per its regulatory filing with the Registrar of Companies (RoC). The board at The Sleep Company has passed a special resolution to allot 70,842 Series B compulsory convertible preference shares (CCPS) at an issue price of Rs 16,392 per share to raise Rs 116.12 crore.
Founded by Priyanka and Harshil Salot, The Sleep Company offers mattresses, pillows, cushions, bedding, and office chairs. It sells its products across e-commerce platforms including Amazon and Flipkart, currently, the company has stores across Bengaluru, Hyderabad, and Mumbai.
It plans to scale this up to 25 stores by the end of the current fiscal year across the top 10 cities. The company is also looking for international expansion including Europe in the coming years.
As per Fintrackr’s estimates, the company has been valued at around Rs 660 crore or $80 million (post-allotment). The valuation will go up as it receives the remaining sum of this round. The company has raised around Rs 190 crore to date including a pre-Series A round of Rs 13.4 crore in July 2021.
Post allotment, Fireside Ventures hold 22.19% while Premji Invest owns 17.41% stake. Promoters of the company command nearly 60% of the cap table.
The Sleep Company’s revenue from operations ballooned 4.8X to Rs 56.2 crore during FY22 from Rs 11.74 crore in FY21. As per the company’s annual financial statements with the RoC, the company slipped in the red and posted a loss of Rs 11.56 crore in FY22 against a profit of Rs 86 lakh in the preceding fiscal year.
The Sleep Company competes with Wakefit, SleepyCat, among others. Sequoia-backed Wakefit appears to be the fastest-growing brand in this space which posted a revenue of Rs 633 crore in FY22. Duroflex is another large legacy brand that neared Rs 900 crore in scale during the last fiscal year.